Abbott announced it has received CE Mark for the world's most sensitive rapid diagnostic test for the detection of hepatitis B surface antigen, the Determine HBsAg 2 test for use with serum, plasma or whole blood. This highly sensitive, easy-to-use, rapid lateral flow test enables identification of those with the virus and facilitates linkage to care in every healthcare setting.

The United States has intervened in a False Claims Act case alleging that Arriva Medical and its parent Alere, now a unit of Abbott, submitted or caused false claims to the Medicare program for medically unnecessary glucometers and paid kickbacks to Medicare beneficiaries in the form of free glucometers and copayment waivers, the Justice Department announced. Additionally, the government has informed the court that it is adding Ted Albin, a reimbursement consultant for Arriva, as an additional defendant in the action. The False Claims Act lawsuit alleges, among other things, that Arriva, with the oversight and approval of Alere, offered "free upgrades" of glucometers to Medicare beneficiaries, the DOJ said. "The claims in which the United States has intervened are allegations only, and there has been no determination of liability," the DOJ noted.

Mitraclip presents Abbott upside regardless of suit outcome, says Morgan Stanley. Morgan Stanley analyst David Lewis noted that Abbott (ABT) filed a complaint in Delaware and various jurisdictions outside of the U.S. alleging Edwards' (EW) Pascal device infringes on Mitraclip's intellectual property. While stating that it is currently challenging to weigh in on the probability or likelihood of success, Lewis said he believes his estimates for Mitracllip growth in 2019 are likely conservative and that he sees it as a driver of upside to Abbott growth regardless of a potential injunction. It is reasonable to assume Edwards developed Pascal in full awareness of Mitraclip's patent portfolio, said Lewis, who added that "Pascal is the second most important catalyst this year from a sentiment perspective, but less of a contributor to topline growth" for Edwards.

Abbott price target raised to $90 from $80 at Argus. Argus analyst David Toung raised his price target on Abbott to $90 and kept his Buy rating after its in-line Q4 results, saying the company has demonstrated investment to drive future growth with its recent product launches becoming "meaningful contributors" to revenue. The analyst adds that Abbott's increased marketing initiatives and acquisition of new growth platforms, along with the management's strong record of execution, justify the premium valuation on the stock.